U.S. Auto Industry deserves the grave they dug for themselves (page 2)

drew sagan

Quality-wise? I am not so sure the Japanese have a such big edge any more. American automobiles have been right "up there" in quality for years now. I think we are largely dealing with perceptions that have carried over from when there was a big difference.

True, but then again the big three did this to themselves as well by going on the cheap through the 1980's. It was at that time that they began to shut down American production plants in mass during and shipping work off to Mexico (among others), all during a time when they had record profits. The dip in quality they experienced during that time built in a huge public perception that Detroit simply has not been able to recover from. It also opened the way for other auto manufactures to become more competitive during that time.

Sure the legacy costs have been a tremendous burden to these companies, but I think they are part of something like a triple death blow. You also have the current financial situation (as well as fuel situation) plus their own poor strategy in assessing the market.

Anybody remember Chevy's "An American R(E)volution". Add this Dodge Ramm challenge onto a list of short sighted, completely ridiculous, marketing plan that will simply not pull them through. Sure this kind of crap could be part of their portfolio, but they made it just about all of it and are going to reap the rewards.

In regards to the displaced people, I think we should do what we usually do. Help people who are displaced find new work rather than bailing out failing companies that do not work. The phrase 'to big to fail' is reflective of a much bigger problem in America IMO.

BurnTheShips

In regards to the displaced people, I think we should do what we usually do. Help people who are displaced find new work rather than bailing out failing companies that do not work. The phrase 'to big to fail' is reflective of a much bigger problem in America IMO.

I think that would probably be best. Also, it would be a good idea to remove a lot of hurdles that could prevent new domestic auto companies from forming. We have been dealing with a government sponsored automobile oligolopoly for many years and like coddling children, this "safety net" leads to the kind of weak, inferior enterprises we are seeing in the US automakers. It also seems that our market is relatively easy for foreign producers to get into. My understanding is that S Korean policy makes it impossible for American cars to be sold there, and Japan, nearly so. This is not a fair trade environment.

BTS

Deputy Dog

I think Burn has it right. This is all about saving the united auto workers union, not the industry. I could go either way on this. If I were to defend the industry, I would say, if the government stopped regulating everything, it might free them up to make better decisions. If you're gonna regulate, share the costs of the regulations. The consumer is tapped out.

stillajwexelder

As I have said on many threads - the Hummer is one of the most evil vehicles ever invented. This " my dick is bigger than your dick" mentality will get you into trouble in the end

magoo

.....ford & gm pay workers $70+ an hour, toyota,etc pay $40+ an hour.......we wonder why our vehicles have gone from $3,000 in the 60's to over $25,000 now.if this bailout is done, americans are simply giving in to more extortion from the unions.......

magoo

BurnTheShips

we wonder why our vehicles have gone from $3,000 in the 60's to over $25,000 now.if this bailout is done, americans are simply giving in to more extortion from the unions.......

Yes. And add the elimination of the secret ballot that is likely to pass under the new administration...

BTS